NASAA Forms Working Group to Develop Improved Fee Disclosure by Broker-Dealers (with Lofchie Music Selection)

The North American Securities Administrators Association ("NASAA") announced that it convened a working group consisting of state securities regulators and representatives of FINRA, SIFMA and the Financial Services Institute to develop improved broker-dealer fee disclosure.

According to NASAA President Andrea Seidt, the working group will consider different types of firms, including wirehouse firms, independent broker-dealers, clearing firms and introducing firms. It will also consider a variety of options, including a model fee disclosure form, accessibility and transparency guidelines, uniformity in terminology and nomenclature of fees, and recommendations on how to notify customers of fee changes. When exploring model fee disclosure, the working group will focus on several areas, including presentation, customer comprehension, and the timing and methodology of fee disclosure.

The formation of the group was recommended by a report, issued earlier this year by NASAA, that examined fee disclosure practices in the brokerage industry.

Lofchie Music Selection: "How Much Do I Owe?"

See: NASAA Press Release.Related news: NASAA: Survey Finds Inconsistent Broker-Dealer Fee Disclosure and Questionable "Markups" (April 24, 2014).